Tuesday, May 20, 2014

Issuers Disappointing Earnings, Wall Street Red

Wall Street ended down on Tuesday ( 20/05/2014 ) local time (Wednesday morning GMT ) , due to a number of retail companies profit most disappointing and after a U.S. Federal Reserve official support benchmark interest rate hikes sooner than some estimates .
The Dow Jones Industrial Average closed down 137.55 points ( 0.83 percent ) at 16,374.55 .

Art Hogan , chief market strategist at Wunderlich Securities , also cited comments from Charles Plosser , president of the Federal Reserve Bank of Philadelphia , who said business conditions may encourage the central bank to raise rates "sooner than expected . "

Dow member Home Depot said limiting sales of cold weather in the first quarter even though it raised its full-year profit forecast . Shares of the Dow component rose 1.9 percent .
Staples plunged 12.6 percent after reporting its first -quarter profit of 18 cents per share , three cents below analysts' expectations . Most of the attenuation is due to the closure of stores in North America over the past 12 months that helped push sales 2.8 percent lower than last year's level .

General Motors announced a recall of 2.4 million vehicles in the U.S. , because the giant car manufacturers continue to address security issues amid scandal withdrawal due to damage to the ignition system .

Recent withdrawals will double the company additional cost to 400 million U.S. dollars , a record for the cost of withdrawal . GM shares sank 3.5 percent .